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Demography and Inequality
How Europe’s changing population will impact on
income inequality
Benoit Guerin
RR-183-EC
April, 2013
Prepared for the European Commission’s Directorate-General for Employment, Social Affairs and Inclusion
The research described in this report was prepared for the European
Commission, Directorate-General for Employment, Social Affairs and
Inclusion.
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that aims to improve policy and decisionmaking in the public interest through
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© European Union, 2013
Reproduction is authorised provided the source is acknowledged.
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Summary
Analysing future demographic trends will help policymakers successfully implement Europe’s poverty
strategy for 2020 by reducing at-risk-of-poverty rates for a significant number of EU citizens. Sections of
the population most at risk of poverty that are likely to grow in size include the elderly and migrants, as
well as elderly women and single heads of households. Successfully managing the transition to an
increasingly ageing population while continuing to maintain high welfare standards will depend upon
continuing reform of pensions systems, healthcare systems and labour markets. Similarly, in light of
Europe’s aim to reduce poverty and income inequality, changing family structures and increasing
numbers of households at higher risk of poverty will require careful attention. Predicted future demand
for highly skilled individuals and declining demand for low-skilled workers may amount to a stretch in
earnings between low and high-income households. Finally, the predicted rise in the proportion of
migrants in the European population could present significant challenges for social mobility and labour
market integration policies.
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